Contactless transaction initiation is often performed with a “smart” card. Such a card typically includes radio-frequency identification (“RFID”) components for contactless communication with a point-of-sale device, a chip, and a magnetic stripe that permits the card also to be used in a conventional magnetic-stripe card reader. The information communicated via the RFID components is generally similar or identical to the information recorded on the magnetic stripe. Payment systems that use contactless cards are generally restricted to providing a mechanism for a payment channel. In some systems, payment requests are routed through a conventional debit or credit authorization network, while in other systems, payment requests are processed offline by the card, which includes a “stored value” account balance. These offline cards are sometimes referred to in the art as “electronic wallets,” “e-wallets,” “electronic purses,” or “e-purses.”
Other types of stored-value cards, also referred to or otherwise sold as gift cards, are typically associated with a centralized and remote stored-value account. Such cards may be contactless, and in some instances, may be relatively simple plastic cards with magnetic stripes. In any instance, the remote account is charged when the card is used through an exchange of information over a network, and can often be replenished by the cardholder or a third party. When the card is used, an account number comprised by the card permits access to the account. These cards also typically provided only a single payment channel, with all payment requests being directed to the remote account that stores the account balance.
In many instances, various contactless card issuers have a proprietary application program on their respective contactless cards that is equipped with a transaction counter. This counter is advanced each time the contactless card, is presented at a contactless reader, and the reader performs a successful read of the contactless application program. As a fraud control measure, issuers also have a transaction counter on their respective host transaction servers. Each time a contactless card transaction occurs, the transaction counter on the host transaction server is advanced for that particular contactless card payment account. For each transaction, the transaction counter on the contactless card s matched against the transaction counter on the host transaction server. If there is a discrepancy beyond a predefined tolerance, the transaction may be declined.
For certain card transactions, such as magnetic stripe cards, consumers have a choice of choosing the payment application they use to complete a transaction. In these transactions, the same data for both PIN-based debit and signature based debit/credit transactions is used. However, for contactless card transactions, reading both applications may cause both application counters to advance, but only one application's payment account information will be sent to the host; thus, discrepancies between the transaction counters may result and payment transactions may be declined.